RELATIONSHIP AMONG CO2 EMISSIONS, RENEWABLE AND ECONOMIC GROWTH WITH MODELING MS-VAR APPROACH: THE CASE OF TURKEY

Abstract

The purpose of this study is to modelling the relationship among CO2 emission per capita, renewable energy consumption per capita and gross domestic product per capita. In this context, the multivariate version of univariate Markov regime change model (MS-VAR) which is developed by Hamilton (1989) and is used prevalently in econometric applications, is performed for Turkey. Markov regime model is a non-linear model approach for changes that it is not known when they occured and it is used to predict the results in stochastic way. Moreover, these models are widely used because they also enable the dating of economic networks. This study the relationship among CO2 emission, renewable energy consumption and gross domestic product were analyzed by the use of MS-VAR model.

Keywords

• Renewable Energy Consumption
• MS-VAR Model
• MS Granger Causality.